California has been for many years now prone to wildfires, and Malibu, with its dense woods and steep slopes, remains one of the most fire-prone areas in the region. The 2025 LA fires have once again left many homeowners in a very tough position as to what to do with their properties. Some may decide to rebuild, while others may decide that the best option is to sell the burnout lot.
We hope this article will help assist you in selling your fire-damaged land in Malibu, from debris removal to market tips, and help you get the most out of your property. If you're considering other real estate options such as buying a home in Malibu, there are various properties for sale in Malibu, CA that might suit your needs.
Clearing and Inspecting the Lot
Before putting a burnout lot on the market, it is necessary to clean up the property and get all the required inspections done.
Debris Removal Process
The City of Malibu has established a clear procedure for fire debris clearance:
Phase 1: Hazmat Inspection – A HazMat team from agencies like the U.S. Environmental Protection Agency (EPA) and California Department of Toxic Substances Control (DTSC) must check the property. This step is automatic and does not require owner consent.
Phase 2: Debris Removal – Property owners have two options:
- Choosing CalOES: This state-funded cleanup program collects and transports fire debris at no direct cost to the property owner, except for what is covered by insurance.
- Private Cleanup: The property owner can hire a state-certified contractor to clear the debris or do it themselves if they choose to incur the costs.
Having the property cleaned up is crucial to showing potential buyers that the lot is ready for the next stage of development.
Foundation and Septic System Inspections
Once the lot has been cleaned up, inspections must be conducted to determine the condition of the remaining structures:
- Foundation: An engineer or licensed contractor must assess whether the foundation is in usable condition or if it needs to be replaced.
- Septic System (OWTS): A City-registered OWTS practitioner must inspect the system before it can be used for rebuilding or temporary housing.
The condition of these features can greatly affect the value and marketability of the lot.
Ways to Enhance the Value of the Lot Before Selling
Beyond clearing the lot, additional measures can be taken to enhance its value and make it more attractive to buyers.s
Disaster Replacement Exemption and Expedited Permitting
Owners of properties destroyed by wildfires can obtain a Disaster Replacement Exemption, which allows for faster processing of permits for rebuilding within the initial site boundaries or up to 10% more.
Lots with approved rebuilding plans are significantly more valuable than those without, as buyers won’t have to spend additional time and money securing permits. If you're interested in building instead of selling, exploring homes for sale in Malibu, CA might give you a better understanding of the local market.
Erosion and Flood Protection
Fire-damaged land is at higher risk of debris flows and mudslides during rainy weather. Implementing erosion control measures such as sandbags can protect the property and reassure buyers of the lot’s stability.
The City of Malibu provides maps indicating high-risk areas and locations where free sandbags can be obtained.
Understanding the Market for Burnout Lots
The sales of burnout lots in Malibu follow a unique trajectory:
- Rebuilding Incentives: The City of Malibu and Los Angeles County have made it easier for homeowners and buyers to obtain rebuilding permits.
- Investor Interest: Developers and homebuilders seek burnout lots due to fewer regulatory hurdles compared to new construction.
- Comparative Pricing: A burnout lot with approvals and reports in place can fetch a considerably higher price than one without plans or permitting progress.
Although parting with a lost property can be difficult, many homeowners find they receive a strong return on selling a cleared, permitted lot. Investors and buyers recognize the long-term value of Malibu land, particularly when the permitting process is expedited. Some may even be looking for a new house for sale in Malibu, CA, making permitted lots even more attractive to developers.
How to Sell Your Burnout Lot: Finding the Right Buyer
When selling a burnout lot, working with a broker specializing in land and familiar with Malibu real estate is essential. At Shen Realty, we’ve had over 25 years specializing in both residential and land sales.
Why Work with a Land Specialist?
- Understanding Permits and Building Processes: Malibu has strict zoning laws, environmental considerations, and county regulations. A professional broker can guide buyers through these complexities, increasing the chances of selling the property.
- Marketing Strategies: Effective advertising, including drone photography, offering memorandums, and proper pricing, is key to attracting serious buyers.
- Buyer Network: Many burnout lots are purchased by developers, luxury home builders, and investors interested in Malibu real estate. An experienced broker can connect you with these buyers.
Timing Your Listing and Setting the Price
Market Trends
- Following a fire, the real estate market in Malibu typically experiences a low initial supply, followed by an increase in available properties as homeowners make decisions.
- Burnout lot values often rise as buyers seek to capitalize on shorter construction timelines.
Financial Considerations
- Some property owners weigh the costs and benefits of rebuilding versus selling. Historically, those who rebuild have seen significant investment gains, sometimes doubling or tripling their property’s value.
- If selling, ensuring debris removal, securing permits, and completing inspections before listing can substantially increase the lot’s market value.
Should You Sell Your Burnout Lot or Not?
Deciding between rebuilding and selling is a personal choice. Some homeowners prefer to restore what they’ve lost, while others opt to sell and move on to new opportunities.
If you plan to rebuild and then sell, you can potentially maximize your profit given you're willing to wait the extra time.
If you plan to sell your burnout lot in Malibu, working with a professional team experienced in land transactions in fire-affected areas is crucial.
At Shen Realty, we specialize in Malibu land sales, offering market analysis, property marketing, and sales management to meet your needs. Let us guide you through this process with a no-obligation consultation today.